CHAPTER 11:
EMPLOYEES’ ROLES IN SERVICE DELIVERY
CHAPTER TOPICS
Service Culture
The Critical Importance of Service Employees
Boundary-Spanning Roles
Strategies for Delivering Service Quality Through People
Customer-Oriented Service Delivery
Technology Spotlight: How Technology Is Helping Employees Serve Customers More Effectively and
Efficiently
Global Feature: How Well Does a Company’s Service Culture Travel?
Strategy Insight: Strategies for Managing Emotional Labor
CHAPTER OBJECTIVES
1. Demonstrate the importance of creating a service culture in which providing excellent service to both
internal and external customers is a way of life.
2. Illustrate the pivotal role of service employees in creating customer satisfaction and service quality.
3. Identify the challenges inherent in boundary-spanning roles.
4. Provide examples of strategies for creating customer-oriented service delivery through hiring the right
people, developing employees to deliver service quality, providing needed support systems, and
retaining the best employees.
LECTURE TIPS & AIDS
1. An alternative to presenting this material in straight lecture format would be to have students help in
the delivery of the service. Figure 11.4 provides an excellent framework for such an activity. In
particular, the class could be divided up into 12 approximately equal size groups (2-4 students,
depending on class size). Each group might be then assigned one of the human resource strategies
depicted in Figure 11.4. For example, one group might be assigned the “empower employees”
strategy. As part of their assignment, then, the students in that team would be asked to describe what
we mean by empowering employees, to discuss how this fits into one of the strategies (in this case
“develop people to deliver service quality”), and to provide examples from industry that they are
aware of where these strategies have been employed. This will help to break up the routine of regular
lectures, and allow students to become more involved in the classroom discussion.
2.Guest speakers can often make a valuable contribution to what is being said in class. Figure 11.4 can
also be used to structure a lecture around the topics in this chapter for a guest speaker. In particular, an
instructor might approach a guest speaker in advance. For example a vice president of marketing or
possibly human resource management in an organization, and ask him or her to come in during the
discussion of the material in this chapter. Without a lot of preparation, many guest speakers can talk
intelligently from this figure. In particular, many knowledgeable managers will know what their
company is planning and doing for many of the human resource strategies depicted in Figure 11.4. So for
example, a guest speaker can easily talk about what’s being done to empower employees, to train for
interactive skills, or things they may be doing to become a preferred employer.
Providing this figure as a framework provides benefits for both an instructor and the guest speaker.
For the instructor, it helps to keep the conversation and the discussion on topics related to class
material. For the guest speaker, it gives him/her an organized framework from which to talk. Most of
the topics are areas that he/she is probably very knowledgeable, and the figure provides an easy
method to present ideas and strategies used in their particular organization (without having to spend a
lot of time in developing a specific framework for that particular class lecture).
QUESTIONS FOR USE WITH CHAPTER OPENING VIGNETTE
Chapter 11: Employees are the Service and the Brand
1. Discuss how the actions of the employees in each of the three stories reflect on their respective
company brands?
2. What key concepts from Chapter 11 are exemplified in each of the three stories in the opening
vignette? Be as specific as possible.
3. Choose one of the three stories and write up two tweets – one from the perspective of the customer
and one from the perspective of a fellow customer – to convey your perceptions of the service
provided.
ACTIVE LEARNING ACTIVITIES
1. In groups of 5 or 6, develop “role plays” of some of the human resource strategies for closing gap 3
(see Figure 11.4). Each group should create two scenarios: one where these strategies are not used
and one where they are used effectively. Each group then presents its scenarios in class. Groups
should start with the “ineffective” scenario and then ask the class to critique what went wrong before
presenting their “effective” version.
2. Have students find clips from popular movies that demonstrate either very effective or very
ineffective internal service relationships. Show the clips to the class and provide a brief analysis of
the film material as it relates to Chapter 11.
Students often come up with amazing ideas for this assignment. One example of this is a student who
showed a clip from a James Bond movie where “Q” and the R & D personnel for Her Majesty’s
Secret Service were showing Bond all the gadgets they had developed to support his hazardous
occupational activities. The student then showed a scene from one of the Star Wars films that
demonstrated the poor internal service Darth Vader received from his organization. The final part of
this presentation was a mini-analysis of the qualitative and quantitative impact of the internal service
on the front-line employees and their organizations (all very negative for Darth Vader and the Evil
Empire and very positive for James Bond and Her Majesty’s Secret Service!).
3. A good question for stimulating lively discussion is “Is empowering employees always a good
thing?” To address this question, an instructor might consider passing out a copy of the article
“Employees Putting on the Ritz at KMC” included on the next page. This article discusses an
employee empowerment program at Kootenai Medical Center in Coeur d’Alene, Idaho.
Students could be asked to discuss potential benefits of the program of empowerment at KMC, and/or
discuss potential drawbacks. Perhaps the class might even be divided and forced to argue for the
benefits of such a program, or argue regarding the drawbacks of such empowerment. Students might
also, at the end of the discussion, think from a “service marketing” perspective whether or not KMC’s
program is a good idea, and asked to defend their opinion. Adaptations of this question have been
used very effectively in exams.
Employees Putting on the Ritz at KMC:
Hospital workers allowed to spend $1,000 a year to improve patient stays
By Craig Welch
COEUR d’ALENE—Kootenai Medical Center plans to give all 1,000 of its employees the
spending power of a hotel housekeeper. But not just any housekeeper—a Ritz-Carlton Hotel
housekeeper. Starting Nov. 1, KMC’s top brass will let every hospital worker spend up to $1,000
a year to improve patients’ or family members’ stays or to help resolve customer complaints. The
million-dollar move mirrors a program at the luxury hotel, which empowers all its employees to
spend money without a manager’s approval. The idea: Keep customers happy.
“We do everything we can to try to never lose a customer,” said Amber Vierra, a spokeswoman
for the Ritz in San Francisco. Joe Morris, the hospital’s chief executive officer, thinks that is a
worthy goal for a hospital as well. Morris stole the idea from author and business guru Tom
Peters, who lectured last month at Eastern Washington University.
“He told us about a housekeeper named Rosa in charge of the second floor at the Ritz-Carlton
who had the authority to spend a couple of thousand dollars to please a guest,” Morris said.
Morris ran with the brainstorm. Under his new program, radiologists could knock down a
customer’s bill when it’s clear the patient had been overcharged. A janitor could buy pizza for
family members waiting for grandma to come out of surgery. A dietician could pay for a cab ride
for an elderly woman who can’t find a ride home.
“People want to have as much control of their work as possible,” Morris said. “Giving them
authority to spend money is a symbolic one, and it takes care of needs of patients and family.
That sends a good message to folks.”
Currently, he said, patients with billing complaints go through a billing department. It may be
months before the complaint is resolved. Other examples abound. “Sometimes a person flies in
to visit a relative and the admitting desk clerk says they’re not in here and we later discover they
are in the hospital,” Morris said. Under the program, Morris said, a receptionist could apologize
to Uncle Joe and perhaps pay for his hotel room.
At the Ritz-Carlton in San Francisco, receptionists frequently eliminate phone charges if
customers can’t remember placing the call, said Vierra. “If another guest is making noise next
door, we would relocate the guest,” she said. “If we didn’t have a room, we’d offer them another
night’s stay free.” The hotel program aptly is named “instant guest pacification,” Vierra said.
Morris is still working out some of the finer points of the hospital’s program. He wants
employees to fill out reports explaining the expenses so the hospital can better track—and rectify
—complaints.
And while 1,000 employees spending $1,000 each could cost $1 million a year, Morris says he
isn’t concerned. “Everyone is not going to spend all the money,” he said. Besides, “if they’re
correcting a mistake or problem, it’s something we should do anyway.” His biggest concern:
Employees might be reluctant to spend the money. “I might have to do it myself just to show
them it’s OK,” he said, laughing.
[Note: This article originally appeared in The Idaho Spokesman-Review, October 9, 1997, pp. A1 and A15.]
Copyright 1997. Reprinted with permission of The Spokesman-Review.
POTENTIAL VIDEO CLIPS TO USE IN ILLUSTRATING CHAPTER 11 CONCEPTS
“Castaway” – The movie begins with a package being delivered in Russia (Tom Hanks sent it
to himself before he left from Memphis). Tom Hanks, a FedEx employee, explains the FedEx
philosophy and the focus on being a speedy and reliable service provider (“we never lose sight of the
time”). The clip can be used to discuss service culture, as well as the difficulty of transferring a
service culture across cultures.
“Saturday Night Live Goes Commercial” (“MetroCard” clip) – In a spoof of a credit card
commercial that appeared in the 1980s, 1Rosann Barr plays a credit card customer service
representative and Phil Hartman a customer who loses his credit card. In this clip, she is clearly NOT
an empathetic (one of the five dimensions of service quality) employee.
“Fawlty Towers” (“Communication Problems” episode) – In this scene, a female hotel
c2ustomer complains about the size of the bath tub and the view from the room…the employee (Basil)
is quite rude in interacting with the customer.
“Road Trip” – In this clip, three3 college-age customers order breakfast, including one
customer who asked for no powdered sugar on his waffle. The employee “fixes” the problem in a
very gross, unethical, and rude manner. (Note: the manner in which the problem is resolved could be
perceived as highly offensive…and, for that reason, might actually appeal to some college students!)
“Ghost World” – A new movie theater employee is being trained 4how to interact with
customers, and does not do all that well. The clip could be used to illustrate human resource
strategies for closing the Service Performance gap (gap 3).
“Maid in Manhattan” – A maid (5Jennifer Lopez) attempts to make a purchase at the hotel
where she works. The employee is very rude to her and basically ignores her at the counter (and even
talks about her on the phone). The clip illustrates common complaints about service workers—that
they are apathetic and unconcerned about the satisfaction of their customers.
“Legally Blond” – Reese Witherspoon, playing the part of a legal intern, interviews a client in
order to determine if the client has an alibi for the crime for which she is accused. The client shares
an alibi, but then asks that the intern NOT share it with anyone else. When the intern returns to the
law firm, a senior partner asks her to reveal the alibi, but she indicates that she promised not to do so.
This clip could be used to demonstrate the sources of conflict for boundary-spanning employees,
particularly person/role conflict and organization/client conflict.
“Waiting” (2005). Three scenes: Chapter 4 / 18:49 – 19:51 (length 1:02); Chapter 12 / 47:55 –
48:10 (length 0:15); Chapter 12 / 48:11 – 49:19 (length 1:08). Each clip shows how a restaurant
manager sets expectations and rules of behavior for his employees and explains the impact of their
actions on other employees.
“Forgetting Sarah Marshall” (2008). Chapter 4 / 15:10 – 19:42 (length 04:32). Peter
decides to take his chances and visits Hawaii without making any reservations. He arrives at his
desired resort only to find out it is completely booked. The hotel employee knows that no one ever
books the hotel’s most expensive suite and makes the decision to allow him to stay there instead of
turning him away. Illustrates employee empowerment.
“Dude, Where’s My Car?” (2000). (2:07 in length). Customers pull up to a
drive-through speaker and place a food order. After every item, the employee on the speaker
asks, “and then?” This continues even when the customers are done ordering, to the point
that the customers become enraged and attack the speaker box. Illustrates the service
performance gap, the critical importance of service employees, the (im)proper training of
employees.
POSSIBLE WEB SITES FOR CHAPTER 11
Company Location
Blackboard www.blackboard.com
Chick-Fil-A www.Chick-fil-A.com
Disneyland Paris www.disneylandparis.com
Four Seasons Hotel www.fourseasons.com
Imperial Hotel (Tokyo) www.imperialhotel.co.jp
Google www.google.com
Merrill Lynch www.ml.com
Nordstrom www.nordstrom.com
SAS Institute www.sas.com
Southwest Airlines www.southwest.com
United Parcel Service www.ups.com
Yellow Transportation www.yrcw.com
APPROPRIATE CASES FOR CHAPTER 11
From previous Zeithaml, Bitner, and Gremler Services Marketing texts:
Zappos.com 2009: Clothing, Customer Service, and Company Culture [included in the sixth
edition of this text: Zeithaml, Bitner, and Gremler (2013) Services Marketing: Integrating
Customer Focus Across the Firm, New York, NY: McGraw-Hill Companies]
Merrill Lynch: Supernova [included in the sixth edition of this text: Zeithaml, Bitner, and
Gremler (2013) Services Marketing: Integrating Customer Focus Across the Firm, New York,
NY: McGraw-Hill Companies]
ISS Iceland [included in the sixth edition of this text: Zeithaml, Bitner, and Gremler (2013)
Services Marketing: Integrating Customer Focus Across the Firm, New York, NY: McGraw-Hill
Companies]
People, Service, and Profit at Jyske Bank [included in the sixth edition of this text: Zeithaml,
Bitner, and Gremler (2013) Services Marketing: Integrating Customer Focus Across the Firm,
New York, NY: McGraw-Hill Companies]
JetBlue: High Flying Airline Melts Down in Ice Storm [included in the sixth edition of this
text: Zeithaml, Bitner, and Gremler (2013) Services Marketing: Integrating Customer Focus
Across the Firm, New York, NY: McGraw-Hill Companies]
Giordano: Positioning For International Expansion [included in the fifth edition of this text:
Zeithaml, Bitner, and Gremler (2009) Services Marketing: Integrating Customer Focus Across
the Firm, New York, NY: McGraw-Hill Companies]
Shouldice Hospital Limited (Abridged) [included in the fifth edition of this text: Zeithaml, Bitner,
and Gremler (2009) Services Marketing: Integrating Customer Focus Across the Firm, New
York, NY: McGraw-Hill Companies]
Hong Kong Disneyland [included in the fifth edition of this text: Zeithaml, Bitner, and Gremler
(2009) Services Marketing: Integrating Customer Focus Across the Firm, New York, NY:
McGraw-Hill Companies]
Custom Research Inc. (A) [included in the fourth edition of this text: Zeithaml, Bitner, and
Gremler (2006) Services Marketing: Integrating Customer Focus Across the Firm, New York,
NY: McGraw-Hill Companies]
Starbucks: Delivering Customer Service [included in the fourth edition of this text: Zeithaml,
Bitner, and Gremler (2006) Services Marketing: Integrating Customer Focus Across the Firm,
New York, NY: McGraw-Hill Companies]
The Quality Improvement Customers Didn’t Want [included in the fourth edition of this text:
Zeithaml, Bitner, and Gremler (2006) Services Marketing: Integrating Customer Focus Across
the Firm, New York, NY: McGraw-Hill Companies]
Northwest Airlines and the Detroit Snowstorm [included in the third edition of this text: Zeithaml
and Bitner (2003) Services Marketing: Integrating Customer Focus Across the Firm, New York,
NY: McGraw-Hill Companies]
Ernst & Young LLP [included in the third edition of this text: Zeithaml and Bitner (2003)
Services Marketing: Integrating Customer Focus Across the Firm, New York, NY: McGraw-Hill
Companies]
AT&T (A): Focusing the Services Salesforce on Customers; AT&T (C): Employees as Customers
[included in the second edition of this text: Zeithaml and Bitner (2000) Services Marketing:
Integrating Customer Focus Across the Firm, New York, NY: McGraw-Hill Companies]
EuroDisney: The First 100 Days [included in the second edition of this text: Zeithaml and Bitner
(2000) Services Marketing: Integrating Customer Focus Across the Firm, New York, NY:
McGraw-Hill Companies]
From other sources:
Four Seasons Goes to Paris: “53 Properties, 24 Countries, 1 Philosophy” [Harvard Business
School Case 9-803-069, 2002]